54-17-303 - Cost recovery. - Utah Statutes

54-17-303. Cost recovery.
(1) (a) Except as otherwise provided in this section, if the commission approves asignificant energy resource decision under Section 54-17-302, the commission shall, in a generalrate case or other appropriate commission proceeding, include in the affected electrical utility'sretail electric rates the state's share of costs:
(i) relevant to the proceeding;
(ii) incurred by the affected electrical utility in constructing or acquiring the approvedsignificant energy resource; and
(iii) up to the projected costs specified in the commission's order issued under Section54-17-302.
(b) (i) The commission shall, in a general rate case or other appropriate commissionproceeding, include in the affected electrical utility's retail electric rates the state's share of theincremental cost relevant to the proceeding that were prudently incurred by the affected electricalutility to identify, evaluate, and submit a reasonable benchmark option, whether or not thebenchmark option is selected or becomes operational.
(ii) A recoverable cost under Subsection (1)(b)(i) shall be included in the affectedelectrical utility's project costs for the purpose of evaluating the project's cost-effectiveness.
(iii) A recoverable cost under Subsection (1)(b)(i) may not be added to the cost orotherwise considered in the evaluation of a project proposed by any person other than theaffected electrical utility for the purpose of evaluating that person's proposal.
(c) Except to the extent that the commission enters an order under Section 54-17-304, anincrease from the projected costs specified in the commission's order issued under Section54-17-302 shall be subject to review by the commission as part of a rate hearing under Section54-7-12.
(2) (a) Subsequent to the commission issuing an order described in Subsection (2)(a)(i)or (ii), the commission may disallow some or all costs incurred in connection with an approvedsignificant energy resource decision if the commission finds that an affected electrical utility'sactions in implementing an approved significant energy resource decision are not prudentbecause of new information or changed circumstances that occur after:
(i) the commission's approval of the significant energy resource decisions under Section54-17-302; or
(ii) a commission order to proceed under Section 54-17-304.
(b) In making a determination of prudence under Subsection (2)(a), the commission shalluse the standards identified in Section 54-4-4.
(3) Notwithstanding any other provision of this chapter, the commission may disallowsome or all of the costs incurred by an affected electrical utility in connection with an approvedsignificant energy resource decision upon a finding by the commission that the affected electricalutility is responsible for a material misrepresentation or concealment in connection with anapproval process under this chapter.

Amended by Chapter 374, 2008 General Session